For domestic debt, the general reference framework is the technical memorandum prepared by IMF missions and endorsed by the Central African authorities. It defines the principal concepts and how they are established; these concepts are used by Central African government departments when the government finance statistics are being compiled.

Domestic public debt is calculated for a given period, based on adjustments made between the amount of payment authorizations made and total disbursements. It therefore consists of the difference between liabilities contracted by the government, excluding external debt operations, and payments made by the Public Treasury.

Government liabilities consist of:

Liabilities on the wages of permanent and temporary government personnel;

Expenditure to provide units with resources, such as for the acquisition of goods;

Automatic expenditure, such as pensions and scholarships (transfers);

Expenditure on subsidies to national and international agencies; and

Expenditure committed for investment and financed from domestic resources.

Government payments are those made by the Treasury:

- On a cash basis (in cash),

- Offsetting operations, and

- Bank transfers.

The net change in arrears is the difference between commitments and disbursements.

Bank debt consists of cash advances granted to the Public Treasury by the primary banks and the BEAC.

External debt is defined as any liability to a nonresident creditor, regardless of its maturity or type, that gives rise to a repayment of principal and/or to a payment of interest

In the case of domestic debt, the transactions covered are those pertaining to budgetary expenditure actually committed but not paid and bank debt.

External debt covers (1)direct debt contracted by the government, (2)debt contracted by the government and onlent to public agencies (government administrative agencies) or parapublic agencies (nonfinancial public enterprises with at least 50 percent or 30percent government ownership), and (3)government-backed debt contracted by public or parapublic agencies.

Unit Coverage

For domestic debt, the institutional units are those dealing with the national budget, including the Central African Social Security Office, and the capital budget.

External debt is compiled by category of creditor—multilateral, bilateral (Paris Club, non-Paris Club)—and by currency of denomination. These classifications are available on request but are not published.

End-of-period exchange rates are used to express, in millions of CFA francs, the stock and the arrears of foreign currency debt. Estimated service (principal and interest) and drawings are calculated based on the components of individual loan contracts (amount, duration, and repayment schedule) and expressed in CFA francs, based on an average rate. Payments are calculated in CFA francs, based on the rates prevailing on the transaction date.

In the case of domestic debt, given the absence of a trial balance of Public Treasury accounts, data have to be drawn from three statistical sources. Domestic debt data are compiled by the General Directorate of the Treasury, the BEAC, and partly by the Debt Directorate. External debt data are compiled by the Debt Directorate.

Sources of budget transactions

General Directorate of the Treasury

- Monthly table of public expenditure

- Monthly table of public revenue, including earmarked revenue

General Directorate of the Central Office

- Report on the execution of expenditure financed from domestic resources

Division of Programs and Loans (Ministry of Planning)

- Annual investment report

Sources of contracted and cash transactions

Banking system

- Monthly statement of bank balances

BEAC

- Monthly statement of Treasury accounts

Sources, implementation of the cash flow plan

- Weekly, monthly, quarterly, and annual cash flow plans

- Government flow-of-funds table

External debt data are derived from loan agreements, notices issued by nonfinancial public enterprises, and reminders of due dates sent out by creditors.

Quarterly for the stock of external debt and monthly for payments of external debt service and arrears. The data on estimated external debt service and drawings are annual but are updated periodically.

External debt data can serve, to the extent that they are sufficiently detailed, as statements for cross-checks with creditors.

BEAC publishes, in its Rapport d’activités de l’exercice (Annual Report), time series showing the consolidated external debt of the CAEMC states, in billions of CFA francs, by country. The data include the year-end debt stock (including arrears on principal and interest), forgiveness, and rescheduling, as well as the service payable.

Design of computer software for managing the payment of wages, pensions, and savings bonds; the management of deposit accounts; and the maintenance of a chart of accounts.

Central government debt

In the case of domestic debt, after the survey covering the period prior to 1998 (agreement on implementation of the SODETEG recommendations on cross-debts, May1996), a further assessment and classification of domestic public debt is under way.

In the case of external debt, the Debt Directorate serviced its existing database during the September2002 national workshop on the strategy for getting out of debt. The database as at end-2002 was thus updated to take account of information obtained from the external creditors.

Establishment of a working group responsible for discussing improvements to be made to the accounting procedures, the preparation of manuals of procedure and on compilation of the flow-of-funds table, the creation of a flow-of-funds committee, and the appointment of members.

Central government debt

Domestic debt:

- Reorganization of the unit responsible for domestic debt management, and

- Provision of resources to the departments responsible for this task.

External debt:

- Publication of an annual memorandum on public debt by the Debt Directorate.

Make the Debt Directorate responsible for the management of all public debt.

Domestic debt:

Install or acquire domestic debt valuation and tracking software.

Train personnel.

External debt:

The Debt Directorate intends to establish a network with the principal partners, namely, the Budget Directorate (Estimates Unit), the General Directorate of the Treasury, the Division of Statistics, and the BEAC, with a view to improving the flow of information.

Construct a Web site containing information on external public debt.

Broaden the coverage of external grant financing data (amounts, donors, recipients, and users of the funds), and entrust their management to the Debt Directorate in accordance with the general objectives of its mission.

Technical assistance and training are needed to build up the capacities of the Committee responsible for monitoring the cash flow plan and the flow-of-funds table.

Central government debt

Physical and financial strengthening of the Debt Directorate, given that its attributions now also include public domestic debt.

Domestic debt:

Need for financing for the acquisition of software to track domestic debt;

Need for financing for the training of personnel.

Notes:

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